New Licensing and Education Requirements FAQ
In early 2023, FSRA has advised that the Private Mortgages Course and Challenge Exam will be available. If you want to transition to the mortgage agent level 2 or mortgage broker licence, you can then begin taking the Private Mortgages Course or Private Mortgages Course Challenge Exam (“Challenge Exam”), in preparation for the new licensing requirements effective April 1, 2023.
FSRA’s communication with Q&As is available here
We have gathered some common questions from our members to help you navigate through these changes. Please keep checking our website for more updates.
Important Terminology:
Mortgage Agent Level 1 = MAL1
Mortgage Agent Level 2 = MAL2
What’s the difference between MAL1 and MAL2?
Effective April 1, 2023, MAL1 provides licensed mortgage agents the ability to arrange mortgages with financial institutions only.
MAL2 provides licensed mortgage agents the ability to arrange mortgages with all lenders, including private lenders and private individuals.
I am a Mortgage Agent now. What do I need to do to maintain my licence?
In order to continue to work with private lenders and/or private individuals as lenders for your borrowers, you must complete the Private Mortgages Course education requirement.
- To be eligible to take the course, you must have at least 12 months experience as an agent.
- If you have at least 5 years of experience as an agent, you are eligible to write the Challenge Exam. This replaces the need to take the course.
- Note that you do not have to take the Mortgage Agent Course.
You have until March 31, 2024, to complete the education requirements, otherwise, your licence will be transitioned to MAL1.
I am a Mortgage Broker now. What do I need to do to maintain my licence?
To maintain your Mortgage Broker licence, and you have had your Mortgage Broker licence for the past 5 years or more, you must complete one of the following options:
1. Successfully pass the Challenge Exam
2. Successfully pass the Private Mortgages Course
Note that you do not have to take the Mortgage Agent Course.
What if I do not want to complete the Private Mortgages Course or Challenge Exam?
You have the option to reinstate your licence as MAL1 licence, meaning you will be able to practice as a mortgage agent working with financial institutions only.
I am a new Mortgage Agent and have been licensed for less than 1 year. What do I do?
You will transition to MAL1 on April 1, 2023 and you will be able to arrange mortgages with financial institutions, but not with private lenders or private individuals.
Once you have 12 months of experience licensed as a mortgage agent and you have successfully completed the Private Mortgages Course, you will be able to apply for the MAL2 licence.
What are the timelines?
January, 2023: Private Mortgages Course and Challenge Exam are available. Exact dates will be provided by January 1, 2023 the latest. Please keep checking our website for more information.
April 1, 2023: New licensing requirements are implemented, and transition period has begun. See above FAQ for what it means for your specific licence.
October 31, 2023: Deadline to complete the Challenge Exam
March 31, 2024: Final date to complete the Private Mortgages Course
I have been working in the mortgage industry for many years, why do I need to take MAL2?
The regulator, FSRA, has mandated that all existing Mortgage Agents and Brokers complete the Private Mortgages Course in order to meet the new licensing requirements effective April 1, 2023.
Private mortgages have a level of complexity that require enhanced knowledge for Mortgage Brokers and Agents to maintain public confidence in the Mortgage Brokerage industry. Further details on FSRA’s rationale on enhanced focus on private mortgages is explained in FSRA’s guidance:
https://www.fsrao.ca/industry/mortgage-brokering/regulatory-framework/guidance-mortgage-brokering/new-mortgage-agent-and-broker-licensing-requirements-0